Question

Purnama Bhd acquired 45% of the ordinary shares of Bulan Bhd on 1 January 2016. The...

Purnama Bhd acquired 45% of the ordinary shares of Bulan Bhd on 1 January 2016. The remaining shares are held by Bintang Bhd and Matahari Bhd ,each holding 25% and 30% of the ordinary shares of Bulan Bhd respectively. Starting from 1 January 2016, it has been agreed that the key management of Purnama Bhd will direct the relevant activities of Bulan Bhd which include approving any kind of transactions related to sales and purchases of goods as well as other transactions related to the assets and liabilities of Bulan Bhd.

Required:

Advise whether Purnama Bhd has control over Bulan Bhd in accordance with MFRS 10 Consolidated Financial Statements.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Novak Ltd has acquired 45% of ordinary shares in Spetz Ltd. Another investor has a 10%...
Novak Ltd has acquired 45% of ordinary shares in Spetz Ltd. Another investor has a 10% shareholding in Spetz Ltd whilst the remaining voting rights are held by thousands of shareholders, none of whom individually hold more than 1% of the voting rights. Novak Ltd holds convertible debt instrument that, as at 31 August 2019, are convertible into ordinary shares of Spetz Ltd at a price of $ 9 per share. At 31 August 2019, the shares of Spetz Ltd...
On January 1, 2016 Penn acquired 100% of Teller. The transaction was not a bargain purchase....
On January 1, 2016 Penn acquired 100% of Teller. The transaction was not a bargain purchase. On the acquisition date, it was determined that Teller had internally-generated patents with a fair value of $36,327,090 that had not been recorded on its financial statements, in accordance with GAAP. The patents were estimated to have a remaining useful life of 15 years as of the acquisition date.   What amount should be reported on Teller's consolidated financial statements as of 12/31/2021 for these...
On January 1, 2020, Dallas Enterprises acquired 1,000 shares of P5 par value ordinary shares, along...
On January 1, 2020, Dallas Enterprises acquired 1,000 shares of P5 par value ordinary shares, along with 250 shares of P25 par value preference shares, of Ford Company in a single transaction for P52,000. Currently, Ford Company’s ordinary shares and preference shares are trading for P35 per share and P84 per share respectively. On January 2, Dallas should allocate the cost of the investment in Ford’s ordinary and preference Sl shares as follows: Ordinary shares ? Preference shares?
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid...
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $856,000 in cash to the owners of Taylor to acquire these shares. In addition, the remaining 20 percent of Taylor shares continued to trade at a total value of $214,000 both before and after Miller’s acquisition. On January 1, 2016, Taylor reported a book value of $752,000 (Common Stock = $376,000; Additional Paid-In Capital = $112,800; Retained Earnings = $263,200). Several of Taylor’s buildings...
Clean Ltd. has the following shares outstanding on January 1, 2012: a.     800,000 fully paid ordinary...
Clean Ltd. has the following shares outstanding on January 1, 2012: a.     800,000 fully paid ordinary shares of HK$1 each; and b.     200,000, 5% cumulative convertible preference shares of HK$20 each. Each preference share can be converted to 4 ordinary shares starting on July 1, 2018. During the fiscal year ended December 31, 2012, the following events occurred: On 1 May, 200,000 ordinary shares were issued at full market price of $20 each. On 1 September, the new ordinary shares...
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid...
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $856,000 in cash to the owners of Taylor to acquire these shares. In addition, the remaining 20 percent of Taylor shares continued to trade at a total value of $214,000 both before and after Miller’s acquisition. On January 1, 2016, Taylor reported a book value of $752,000 (Common Stock = $376,000; Additional Paid-In Capital = $112,800; Retained Earnings = $263,200). Several of Taylor’s buildings...
Eho Corporation was organized on January 1, 2019, with an authorization of 600,000 ordinary shares with...
Eho Corporation was organized on January 1, 2019, with an authorization of 600,000 ordinary shares with a par value of €5 per share. During 2019, the corporation had the following capital transactions: (1) On January 5, issued 50,000 shares at €5.8 per share. (2) On May 8, purchased 300 shares from the market at €62 per share. (3) On July 28, sold 80 shares held in treasury at €60 per share. (4) On December 31, sold 40 shares held in...
Equity section of Sol Corporation shows the following on January 1, 2018. Shares Ordinary – Ordinary,...
Equity section of Sol Corporation shows the following on January 1, 2018. Shares Ordinary – Ordinary, $1 par value 1,000,000 shares authorized, 500,000 shares issued and outstanding $500,000 Shares premium – Ordinary 500,000 Retained earnings 1,750,000     Total Equity       $ 2,750,000 During the year, the company had following transactions occurred: Mar. 1 Issued 50,000 ordinary shares for $150,000. Jun. 1 Acquired 5,000 shares of its shares for the treasury at $4 per share Sep. 1 Sold 3,000 shares at...
Public Berhad acquired 90% of the ordinary shares in Queen Berhad on 1 August 2018 at...
Public Berhad acquired 90% of the ordinary shares in Queen Berhad on 1 August 2018 at a cost of RM480,000. On that date the net assets of Queen Berhad amounted to RM500,000. In the year ended 30 June 2019, Public Berhad reported a profit of RM210,000 and Queen Berhad of RM120,000. Trading conditions indicated that the goodwill in Queen Berhad may be impaired and a review found that it was indeed impaired by 50%. It is Public Berhad group policy...
On January 1, Year 1, BAT Company acquired 60 percent of the common shares of STIC...
On January 1, Year 1, BAT Company acquired 60 percent of the common shares of STIC Company and obtained control over STIC. Of the $300,000 acquisition differential, $200,000 was allocated to land and $100,000 was allocated to goodwill. Deferred income tax implications related to the acquisition differential were not recognized. During Year 2, BAT sold inventory to STIC for $100,000 and earned a gross margin of 30 percent. At the end of Year 2, STIC still had the goods purchased...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT